What is Sculping? Please provide correct information about Sculping in Forex market?


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Michael Lewis answered

I think you refer to "scalping", which is a Forex strategy that involves short term trading, which generally takes some seconds or minutes, and is based totally on technical analysis. In scalping it is not the quality of trade that matters, but the quantity of them. The scalpers enter more positions at once during a session and place stop orders or just exit positions manually if it is possible. The total amount of trades can generate a good profit.

Here are the most common scalping settings:

Time-frame– M1, M5, M15;

Currency pairs – GBP/USD, EUR/JPY, USD/JPY, EUR/USD in the first instance, then the next ones that you may like;

Trading session – US and European trading sessions;

Stop Orders – generally, take profit is smaller in pips numbers than Stop Loss, which means you should set it closer. For example, you can place the take profit at a distance no less than 10 pips while Stop Loss at 15.

Common indicators – use trend indicators like simple and exponential moving averages with low periods, from 5 to 20, and one MA with higher period to understand the general trend. You can also use oscillators to assess the oversold or overbought state.

Price movement conditions – it is advisable to trade when there are sharp short term trends, but sideways trends are also good for experienced scalpers.

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